NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13NGV infrastructure, United States market review www.ngvevent.com/markets-report
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 2NGV infrastructure, United States market review“A golden age” for Natural Gas was heralded by the IEA lastyear, and a year later its hard to disagree. WA MT ME NDAdvances in extraction technology and the high oil prices VT OR MN NHhas made Natural Gas Vehicle Infrastructure an economic ID SD WI MAimperative. MI NY CT RI WY IA PA NETo determine the extent of the opportunity NG presents we NV OH NJ UT IL IN MD DE Washington DCcommissioned a report that focused on: CO WV CA KS VA MO KY• Major drivers for NGVs: How durable is the market? NC TN OK• US NGV development in a global context AZ NM AR SC MS• Government policy: How it will shape the NGV market AL GA over the next 5 years? TX LA• Market forecast: short term prospects for NGV and FL home fuelling AL• NGV Infrastructure reviewed United States’ global ranking AT&T’s investment Federal funding for Time taken to repay fuel/station (No. of NGVs) in NGVs Home fuelling research capital costs/trucks for Dillon Transport’s NG stations 14 $565 million $30 million 50 months
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 3Concentration of CNG fuelling stations in the US 47 CALIFORNIA UTAH COLORADO, OKLAHOMA, NEW YORK Ranked 1st nationally for NG Ranked 3rd nationally for NG PENNSYLVANIA and TEXAS Ranked 2nd infrastructure. Pioneer in air infrastructure. 9% of CNG All strongly promote nationally for NG LNG stations are operating nationwide quality policies and provides vehicles (11,000) in the United infrastructure investments infrastructure incentives for converting to States are located here. alternative WA vehicles and fuel infrastructure construction. 988 MT ME ND OR VT MN NH CNG stations are operating nationwide ID SD WI MA NY MI RI WY CT IA PA NV NE NJ OH UT IL IN MD DE Washington DC CA CO WV KS MO VA KY NC TN AZ OK NM AR MS AL GA SC 180,000 conventional stations are operating nationwide TX LA AL Legend: Natural Gas Stations FL None 51-100 10 or less 101-200 11-20 201-300 21-50Source: www.cleanenergyfuels.com/pdf/CE-OS.ANGH.012412.pdfSource: www.cleanenergyfuels.com/pdf/CE-OS.ANGH.012412.pdf
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 4America’s natural gas highway The $450 million project is financed by investments from Clean Energy co-founder T. Boone Pickens, a $150 million investment by Chesapeake Energy Corporation, and investments by additional international investors: Temasek Holdings, Seatown Holdings and RRJ Capital Master Fund.Source: www.cleanenergyfuels.com/pdf/CE-OS.ANGH.012412.pdfSource: www.cleanenergyfuels.com/pdf/CE-OS.ANGH.012412.pdf
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 5NGV infrastructure global map n 1 – 10 n 11 – 25 n USA 10. UKRAINE 7. CHINA 14. USA Natural gas vehicles: 200,000 Natural gas vehicles: 450,000 Natural gas vehicles: 112,000 Refuelling stations: 285 Refuelling stations: 1,350 Refuelling stations: 1,000 (December 2006) (December 2009) (December 2010) 4. BRAZIL Natural gas vehicles: 1,664,847 Refuelling stations: 1,725 (December 2010) 6. ITALY 9. THAILAND 8. COLUMBIA Natural gas vehicles: 730,000 Natural gas vehicles: 218,459 Natural gas vehicles: 340,000 Refuelling stations: 790 Refuelling stations: 426 Refuelling stations: 614 (December 2010) (November 2010) (December 2010) 2. IRAN 1. PAKISTAN 5. INDIA 3. ARGENTINA Natural gas vehicles: 1,954,925 Natural gas vehicles: 2,740,000 Natural gas vehicles: 1,080,000 Natural gas vehicles: 1,954,925 Refuelling stations: 1,574 Refuelling stations: 3,285 Refuelling stations: 571 Refuelling stations: 1,878 (December 2010) (December 2010) (December 2010) (December 2010)Source: http://iangv.org/tools-resources/statistics.html
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 6NGV executives market sentimentNGV executives agreed that the following drivers to the future size of the Natural Gas Vehicle NGV executives expected significant progress in overcoming the following hurdles to NGCInfrastructure market are important adoption in the next 3 years Spread of price between Diesel Availability of Natural Gas Lack of NG stations 65% & Natural Gas supplies Lack of tax incentives 24% Complicated 22% Availability Availability fuel tax of Natural Gas of Natural Gas obligations for vehicles stations station owners High relative cost of NG vehicles 8%Source: FC Business Intelligence survey, April 2012
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 7Forecasted NGV infrastructure timeline 60% of fleet managers think CNG will fuel 50% of local fleets by 2020. 37% 60% 57% 36% 43% of Natural Gas producers believe that LNG will fuel 51% of long 43% 28% 48% 40% 40% 28% haul operators by 2020. 60% of Natural Gas Utilities believe that NG stations will be easily available by 2030. 29% 64% 60% 29% 29% 60% 50% of Equipment suppliers think that home refuelling appliances will be 50% 40% 43% 44% G Equipment suppliers G Natural Gas producers G Fleet managers G Natural Gas Utilities easily available by 2015. 2015 2020 2030 NeverSource: FC Business Intelligence survey, April 2012
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 8Industry activityAT&T DillonIn March 2009, AT&T announced plans to invest up to $656 Dillon has supplied a sample ROI calculation that demonstrates the possible payback for switching to NG.million as part of a long-term strategy to deploy approximately15,000 alternative-fuel vehicles through 2018. Up to 8,000 ofthese vehicles will be CNG vehicles, representing one of thelargest US corporate commitments to CNG vehicles to date.AT&T has also committed to replacing gasoline-poweredpassenger vehicles it retires with alternative fuel models,including replacing more than 7,000 passenger cars through2018. AT&T had deployed more than 6,000 alternative fuel 10 trucks vehicles as of January 2012, including more than 4,500 CNG 400,000 DGE per year Incremental cost of xvehicles and more than 1,600 hybrid electric vehicles. x NG truck $50,000 200,000 miles a year $1.50 fuel savings x : – = 10 vehicles 5mpg Clean Energy / Navistar = $600,000 = In 2012, Clean Energy and Navistar entered into an agreement 400,000 DGE per year savings on fuel costs per year $500,000to supply customers with NG-fueled trucks, if customers agreeto purchase NG from Clean Energy. The program will commencewith MD trucks, and then expand to include Heavy Duty (HD) Payback period for trucks is 10 months.rigs during 2013. Navistar will develop and sell the NGVs, whileClean Energy is responsible for necessary fueling infrastructure. Trucks of this class typically are warranted for five years. The savings, going forward, could be used for capital recovery on infrastructure developmentRyderRyder launched an HD and Medium Duty (MD) truck rental andleasing project in Southern California, with an initial order of 202vehicles in July 2011. The company will construct two NG fuelingstations to fuel its CNG fleet.
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 9MethodologyNumber of executives interviewed Number of executives surveyed Number of case studies Business Development Management Strategy Management Operations Sales 36 202 9 Marketing ng Engineering ering Research & Development Procurement Manufacturing Other
NATURAL GAS VEHICLE INFRASTRUCTURE MARKET REPORT 2012-13 | PAGE 10Industry review❝The Natural Gas Vehicle Infrastructure Report 2012-13 providesan impartial critique on the challenges and opportunitiesevident for those considering the extent to invest in Natural GasVehicle Infrastructure. It is a valuable read for those seeking ❝ The NGV Infrastructure report is a great read, but provides a considered, comprehensive analysis of the NGV landscape in the U.S. I intend to use it as the basis of my presentations and strategy documents in the months and years ahead. I think it ❝ FC Business Intelligence’s report provides an in-depth analysis of the Natural Gas Vehicle market in North America. It includes strategic insights into the development of NGV infrastructure, lessons learnt and the steps taken to maximize return onstrategic insights into the activities of market leaders and the would be value for any Utility, City, or County Fleet Manager investment. I recommend it for organizations consideringfuture of market. I would recommend this report to executives who wants to reduce their overall fuel costs by half, improve the NGVs as an alternative to their current fleet vehicles.”looking to optimise their ROI from NGVI infrastructure.” environment, and help America achieve energy independence. J. Alexander | President, MansfieldFrank Chapel | Apache Corp, Director, Natural Gas I was astounded to see how the U.S. market is developing in aTransportation Fuels global context. I would recommend it.” Pat Riley | Gibson Country Utility District, General ManagerAbout FC Business IntelligenceA business intelligence and networking company we help leading corporations define their future strategy and direction, develop growthopportunities and solve the problems facing their sectors. The engines of our business are growth and change. We focus on two types of industry:• Those arising from technology developments which are moving into full global commercialisation.• Those needing to change in order to respond to disruptive technologies or global events.Our aim is to provide companies with insights into strategic options for the future in order that they can capitalise on opportunity.